News Corp, which owns MySpace, has revealed it is considering a sale, merger or even spinoff of the social network.

Social network could face sale, merger or spinoff

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News Corp, which owns MySpace, has revealed it is considering a sale, merger or even spinoff of the social network.

"We are considering a number of strategic options for the business," a News Corp spokeswoman told the Wall Street Journal.

According to the newspaper, which is also owned by News Corp, a spinoff is thought to be the most likely outcome.

Meanwhile, a source close to MySpace told Reuters a spinoff was likely to entail someone from the venture capital or the private equity community investing in MySpace, thereby altering the current ownership structure.

The news comes just a day after MySpace announced plans to lay off 500 employees, or about 47 percent of its global staff, as part of a restructuring by the once-leading, now struggling social-networking site.

The reorganisation includes striking up partnerships in the UK, Germany and Australia for managing advertising sales and content, MySpace said.

News Corp purchased MySpace for $580m in mid-2005, when the site ruled the emerging social-networking market and had great potential to be a gold mine of advertising revenue.